Infosys Ltd, India's No.2 software services exporter, reported a 24 percent rise in quarterly profit, meeting expectations, due to higher demand for its outsourcing services by Western clients looking to cut costs.
Profit at Infosys, whose clients include Bank of America, Volkswagen and GlaxoSmithkline, rose to 23.7 billion rupees for the quarter ended September, from 19.06 billion rupees a year earlier.
Analysts were expecting a profit of 23.8 billion rupees, according to Thomson Reuters data.
COMMENTARY
KISHOR P. OSTWAL, CHAIRMAN, CNI RESEARCH, MUMBAI
"The numbers are in line but not the guidance. I think Infosys stock will correct by at least 5 percent.
"On the sector guidance... I think most of the analysts are now becoming negative on the IT sector."
G. CHOKKALINGAM, EXECUTIVE DIRECTOR & CHIEF INVESTMENT OFFICER, CENTRUM WEALTH MANAGEMENT, MUMBAI
"I have been selling the stock and it's the best time to come out of the stock because the revenue growth in dollar terms is stagnating.
"Base effect and expected rupee appreciation would further add to the pressures."
R.K. GUPTA, MANAGING DIRECTOR, TAURUS ASSET MANAGEMENT CO., NEW DELHI
"Having maintaining their revenue guidance is itself a big achievement for Infosys looking at the global scenario.
"I think the hard work is over for Infosys, since the U.S. economy is showing signs of improvement and a lot of changes are happening within Infosys itself."
KAWALJEET SALUJA, EXECUTIVE DIRECTOR, KOTAK INSTITUTIONAL EQUITIES, MUMBAI
"This is disappointing."